Features and Requirements of HomeReady and Home Possible Loan in Wellington, FL
HomeReady and Home Possible Loan are two great options for the low-income borrowers in Wellington, FL. They come with lenient down payment and credit score requirement and offer income flexibility which make it a little easier to qualify for them. If you are struggling to qualify for a conventional loan because you can’t make a large down payment, consider applying for a HomeReady Loan or Home Possible Mortgage. Below we have discussed the features and requirements of both these loan programs.
Features of Wellington, FL HomeReady Loan
- Offered by Fannie Mae
- A minimum down payment of 3 percent of home’s purchase price
- Up to 95 percent loan-to-value ratio for refinancing
- Both first-time and repeat homebuyers may be eligible
- Cash-on-hand, Community Seconds, grants, and gifts permitted for closing costs and down payment
- Home owner education course is mandatory
- Mortgage insurance isn’t part of upfront cost and may be cancelled under certain circumstances
Requirements of Wellington, FL HomeReady Loan
The HomeReady Loan from Fannie Mae is designed for low-to-moderate income borrowers and as such, it comes with income limits. As per the latest changes on the income limits, the qualifying income of the borrower should be less than 80 percent of the area median income for the location of the property to qualify for HomeReady Loan. The minimum credit score required to qualify for a HomeReady Loan is 620.
Features of Wellington, FL Home Possible Loan
- Offered by Freddie Mac
- As low as 3 percent down payment accepted
- Mortgage insurance included as monthly premiums and may be cancelled if the borrower meets certain circumstances
- Both first-time and repeat buyers may qualify
- Rental income accepted
- Primary residence only
- Co-borrowers (non-occupant) can contribute to borrower’s fund on one-unit properties
- Home owner education course mandatory for first-time homebuyers
Requirements of Wellington, FL Home Possible Loan
In order to qualify for a Wellington, FL Home Possible Loan, you need a credit score of at least 620. A credit score of 680 or more may make you eligible for better rates. Income limits on the Home Possible Loan were recently revised and now they are the same as that of HomeReady Loan. Thus, a borrower may qualify for this loan if their qualifying income doesn’t exceed 80 percent of the area median income for the home’s location.
For years, low-income borrowers had to resort to FHA loans because of their low down payment requirements. However, now HomeReady and Home Possible have become a popular option among low-to-moderate income borrowers thanks to their lenient lending requirements. Fannie Mae and Freddie Mac have finally recognized the problems low-income borrowers face and as such, introduced low down payment loans.
If you want to apply for a HomeReady or Home Possible Loan or have questions about these two programs, talk to the experts at Fourpath Mortgage. Call 954-507-7553 to get in touch with us.